The USDCAD continued its move to the downside today, extending the sharp reaction that followed the stronger-than-expected Canadian jobs report. The data gave traders a clear fundamental reason to sell the pair, and that sentiment has carried through the session. As a result, the currency is now down roughly -0.75% on the day, marking one of the more notable directional moves across the major pairs.
From a technical perspective, the decline has added significance because it pushed the price below two key daily moving averages. First, the pair slipped under the 100-day moving average at 1.3900, a level that buyers had been leaning against. Shortly after, the momentum continued and the price also broke below the 200-day moving average at 1.3889. These breaks change the tone of the market. What had been support is now risk-defining resistance for traders who are leaning on the bearish side. As long as the price stays under those two moving averages, sellers can point to a structure that keeps them firmly in control. A move back above either level would weaken that structure and signal that today’s downside momentum may be fading.
On the downside, traders now shift their attention to the next major technical target: the 50% midpoint of the move up from the mid-June low to the November high, which comes in at 1.3839. Midpoints are important because they often act as a pause point—either a place where profit-taking emerges or a level that accelerates a trend when broken. Should the price fall below that 50% level, the door opens for a deeper rotation lower toward the 61.8% retracement at 1.3768, a level that has historically attracted both buyers and sellers due to its Fibonacci significance.
Overall, the bearish tilt is clear. Fundamentals gave the initial push, and the technicals have reinforced it with breaks of key moving averages and a well-defined roadmap of targets below. The video above walks through these dynamics in detail and highlights the areas traders will be watching as the market works through the next stages of this move.
